Chapter 8 (Test 2)

________ is the set of costs associated with unfamiliar operating environments; economic, administrative and cultural differences; and the challenges of coordination over distances

Liability of foreignness

If conflict in a strategic alliance or joint venture is not manageable, a(n) _______ may be a better option.

acquisition

In Porter's model, if a country has both ________ and __________ production factors, it is likely to serve an industry well by spawning strong home-country competitors that can also be successful global competitors.

advanced; specialized

Arkadelphia Polymers, Inc., earns 60 percent of its revenue from exports to Europe and Asia. The CEO of the company would be

concerned if the value of the dollar strengthened.

A global corporate-level strategy emphasizes

economies of scale.

The location advantages associated with locating facilities in other countries can include all of the following EXCEPT

evasion of host country governmental regulations.

A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly small company, but it is looking for growth opportunities. This company should primarily consider the option of

exporting.

The benefits of expanding into international markets include each of the following opportunities EXCEPT

favorable tax concessions and economic incentives by home-country governments.

The problems associated with exporting include

high transportation costs and the expense of tariffs.

Under industry structural analysis (Chapter 2), ____ rivalry is viewed as detrimental to profitability. Under the model of national advantage (Chapter 8), ____ rivalry is viewed as ____ as it results in competition and surviving firms are able to compete against global rivals.

high; high; beneficial

Which of the following is NOT a typical disadvantage of licensing?

incompatibility of the licensing partners

International strategy refers to a(n)

strategy through which the firm sells products in markets outside the firm's domestic market.

A multidomestic corporate-level strategy is one in which

the firm customizes the product for each country in which it competes.

One of the primary reasons for failure of cross-border strategic alliances is

the incompatibility of the partners.

Effectively implementing the ________ international corporate-level strategy often produces higher performance than does implementing either the _______ or _________ strategies.

transnational; multidomestic; global

All of the following are international corporate-level strategies EXCEPT the ____ strategy.

universal